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A Canadian packaging supplies manufacturer is closing its Grand Rapids facility, resulting in 35 layoffs as the company consolidates some of its operations.
Cascades Enviropac, a division of Cascades Holding US Inc., notified state officials last month that it would immediately start employee separations leading up to the closure of the plant, located at 236 Stevens St. SW on Grand Rapids’ south side.
Cascades Communications Director Christine Beaulieu said the plant closure is the result of the company consolidating its isothermal packaging operations.
“It’s a difficult decision, but essential if we are to remain a partner of choice for our customers in the isothermal distribution market,” Beaulieu said in an emailed statement to Crain’s Grand Rapids. “We need to simplify our structure to operate with more agility, close to our customers and remain competitive.”
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Operations at the plant are expected to end in mid-December, Beaulieu added, noting that the company “works closely” with affected employees, “whether by exploring relocation opportunities elsewhere in the company or by offering support in finding alternative employment.”
Cascades in 2007 acquired the Grand Rapids plant, which originally opened in 1985, according to the company’s website. The plant manufactures honeycomb paperboard for the company’s U.S. market. Cascades in 2012 consolidated some of its isothermal packaging operations in Toronto to Grand Rapids. The company’s trademarked Technicomb honeycomb packaging at the time was primarily intended for the furniture packaging industry.
In its most recent quarterly report, parent company Cascades Inc. reported a “solid second quarter,” with net income more than doubling to $22 million (Canadian) year-over-year on $1.16 billion (Canadian) in sales.
However, the company’s growth was driven by its tissue papers segment, while its specialty packaging segment declined and containerboard experienced “slightly softer” results.
The Grand Rapids plant closure comes as market analysts forecast steady growth in the isothermal packaging market based on several factors, including the growing availability of frozen food products and rising research and development to improve packaging technology, according to Data Bridge Market Research, which estimates a 5.1% growth rate for the sector from 2020-2027.
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